Natural Gas Price Forecast – Natural Gas Markets Break Minor Support

Natural gas markets have fallen a bit during the course of the trading session on Thursday as we have broken down below the $3.80 level, which of course is a minor support level that we have been testing over the last month or so. That being said, we are also reaching towards the 50 day EMA, so that comes into the picture, and perhaps could offer a little bit of temporary support.

NATGAS Video 20.08.21

While I would not be a big buyer of the market right now, I do recognize that the market still should have plenty of support extending all the way down to the $3.60 region, as it was the previous bullish flag. We look at the bullish flag and even the one before it, they both suggested a move to the $4.40 level, which as things stand right now is still a possibility. However, we need to pay close attention to that heat wave in the United States, as the demand for natural gas has been picking up.

If we were to break down below the $3.60 level, then I think it is a negative sign, because quite frankly we are at extraordinarily elevated prices. However, I am not quite ready to give up on the uptrend, although things are most certainly a turning quite rapidly. All things been equal, this is a market that is worth monitoring at this point, because we have made a “lower low” now, and it is only a matter of waiting to see if we form a “lower high” to confirm the downtrend. At this point, I still think there is a strong opportunity for a bounce, but caution is advised.

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